i'm lori rothman in for gerri willis perry the recovery is flat lining. the jobless rate has been about 8% for more than three years. but president obama is getting a well timed bump care of the labor department. bystanders showing more jobs have now been created and lost since the president took office. does this hurt mitt romney's argument? let's ask former republican governor mike huckabee of arkansas. it is wonderful to have you. >> great to be here. lori: what do you think of this jobs revision? it seems to be a nice boost for obama. >> if he is looking for anything, this is the lifeline he has. the fact is, of the jobs that have been created are jobs that are being created at a much lower pay scale than the jobs that people lost. some 30% lower. the fact that people have got a job does not necessarily mean they're better off. the key thing is that median household income is down by more

than $3,000. that is the real issue. lori: median incomes, talking about flat line, that is one of the crises of the jobs problem in this country that has been a reported. and let you mention it. tell me what you think the response should be. so far it has been just to tap the bailout package, the big stimulus in 2009. shouldn't it be a labour participation rates? that has been tumbling. creating jobs, but people are jumping out of the work force left and right. >> leaving jobs that pay $30 an hour and taking jobs that pay $12 an hour because that is all the confined. the need to be very specific about what these economic numbers translate into. i would say, there are many of you out there in the country, you have lost $3,000 of your effective date, what you're paying twice as much for gasoline. your utilities are up. your health care is up double digits. you know this. i don't have to tell you. you are feeling it. yet the president is telling you that you are doing well and the private sector is doing fine.

you have to decide, do you believe him or your eyes? something is not clicking here. lori: that polls show that americans are more confident in obama's handling of the economy and romney. we have two jobs report left before the election. do you think -- well, what do you think the impact will be? >> i don't think there will be all that significant because if it was going to be significant in the jobs report obama would be toast. he has had 43 months in his term so far where the jobless rate is above 8%. now, and all of the time between 1948 and 2009 when obama took office in cumulative months and which the unemployment rate was above. some 39 months and 43 months in just three and a half years of his presidency. those are the staggering your numbers. yet people still say, well, he's trying really i've.

lori: he wants to try to cut tax of year and a higher percentage. 75 percent individual income rate. >> it is absurd. there is no economic basis for that other than we don't think people ought to earn that much money, so we're going to take away. that is socialism at its very essence. and so you elected socialist president. voila. you're going to have socialist policy, and that is what you have. he comes out with a 75% tax rate i chased the wealth of france. if you are a high income earner and investor, why on earth would you stay in france and have $0.75 out of every dollar taken away before you got a chance to spend it. almost any european country you could go and do better than that lori: do you think we're facing a similar path and the u.s. or do you expect americans to leave? >> it is very possible. there is some indication that some americans are already looking for ways to protect

their income, protect their wealth. and you cannot blame them because of somebody -- i mean, it's the same thing. if i'm walking down sixth avenue and someone comes and says, i want all your money. my first inclination might be to try to save my life. secondly, protect their asking me for. if i can't, maybe of turnover. if i feel like i have a way to beat them up before they beat me up, sure, help protect its in my pocket. this is the government basically being a moderate. they get to do it legally and there is not all lot you can do to stop them. lori: remind me what tax reform should look like. >> we ought to be taxing consumption instead of productivity. the things that make an economy strong our work, savings, investment. those are things that make us stronger. we penalize the very things that are productive. we ought to be rewarding people are working and saving and investing because they're helping the economy to grow. that is why i am a fairfax -- fair tax supporter which would

create a very different model. it is changing the foundation. lori: at the end of the day you need economic growth to be supportive of tax rates, and we are just come as you said, flat line at 1%. a revision, a downward revision. you know, hell are we going to get the overall growth rate higher? do we have to wait? obviously the election is so near, but are we just putting too much hope on to washington right now and not enough on good old fashion innovation and ingenuity? >> ingenuity and in this is great, but if government policies have their foot on the throats of the innovators and those who have the ability to create jobs it will take them somewhere else so they don't lose all of their investment and are not just putting a redressed the government needs to say, there will be no tax increase. i don't think we can afford a tax cut right now. i don't. we need to say, there will be no tax increases. two years, three years. cell that. be done with it. make sure that people are afraid

to make some investments and afraid to make some money because if they are afraid to make it there won't be afraid to spend it. lori: you will talk about the soaring regulatory cost a little later in the hour. for now, really nice to see you. thank you for sharing your outlook and insight. >> great to be here. lori: well, be sure to tune in every weekend on the fox news channel. stay with us at the bottom of the or for political coverage with republican strategist and fox is contributor ed rollins. >> coming up on "the willis report," there is a huge cost to washington getting involved in our lives, and we are paying for it big time. how do we cut through the government red tape? here with answers next. and apple turning on the water works over criticism for its smack down. where does the iphone maker go wrong? will customers be able to forgive and forget to back here with the latest. also, you may think your credit score is this, but you're lenders could be seeing that.

our financial expert ways and. we are on the case next on "the willis

♪ lori: surprise, surprise. government regulation is to blame for the u.s. becoming less internationally competitive and years. this is according to a new george mason university report. the study suggests tarnishes dry regulatory burden is not only harming the ability to do business, but the problem is likely to get even worse. former cbo director joins me now , president of the american action forum. thank you for joining is a day. give me a sense of how stifling $488 billion in regulatory costs under this president are for the economy. >> you can think of a regulatory costs just the same as you think of a tax cost. in the economy recovering as poorly as this one and you hit a

tax increase you expect bad things to happen. certainly this is one of the two big problems facing the economy. the other being a large amount of debt, and it is the reason why in ranking after ranking we are seeing the united states but is lower and lower. this is not a place for companies want to come. lori: what should we be spending in regulatory costs given are lackluster pay? >> it's going to get worse before it gets better. the administration's different after the election and an enormous amount of regulatory activity. the right thing to do is actually just sort of stop issuing new regulations for a while. take a timeout. then put in a system where if you want to add a regulation something else has to go. you're forced to pick and do it wisely. certainly congress there is no escape.

we're hurting the economy. unless we change the laws, the regulations that implement them will state. lori: can you tell me or is it fair to suggest that these burdensome costs are actually shaving points of gdp? >> there is no question about that. again, if i told you there have been a $500 billion tax increase will be talking and howard slow gdp growth. we know the debt burden is slowing gdp growth. its other shock that we are crawling along at something under one-and-a-half percent because we have an economy that has to many burdens. large new spending programs, large debt, and now large regulatory burden. lori: the most costly federal agencies of the epa, department of housing and human services. ideas for cuts? baena we are locked in as we are talking about, but going forward . >> you have to go to the epa and ask a very, very serious question. what point have we crossed the line with a green agenda is crushing the jobs agenda. i think that is a place where we ought to start.

think hard about has been going on for the past four years. again, if you go over to hhs the number one culprit will be health care reform. really not a sensible system. lori: everyone is talking about this fiscal cliff that the economy is at risk for falling off. part of that includes the deep defense cuts. so concerned about these cuts, yet we are calling for additional regulatory costs. it is like again getting back to the priorities. these are troubling times. >> we have our priorities all wrong. the defense cuts are very bad policy. secretary of defense has said is the hall of the u.s. military and heard his readiness and ability to defend our nation. that's a terrible idea. we are now finding a more and more about the sequester. the law says that if you're going to cut the defense spending and lay off workers the contractors have to give those workers 60 days' notice.

that would have come before the election. conveniently department of labor says you don't have to send out those notices. today we found that the administration said that those same contractors guy if you don't send out a notice and get sued we will pay all legal costs. now the taxpayer is going to be on the hook for the compensation and legal costs because everyone will see knowing that the money is there. lori: so, with reference to the fiscal cliff, it could tip the u.s. and possibly the global economy into recession. we know what's going on in your. at the very least it would be likely to have the rate of global growth in 2013. what you think will happen after the birth? >> it would be irresponsible if not immoral to not fix the fiscal cliff. the tax increases are foreign $40 billion. think of this is taking all the regulations that have been issued and then hitting them in one big fell swoop on january 1st. there is no way we can avoid a

recession. the congress has to come back and the president has to take some leave and sick, this is not economically sensible. we cannot raise taxes. they have to fix the fiscal cliff. lori: what do you think voters think about all of this? were talking about scary numbers, but the polls might reflect differently. >> that think we're feeling the effects of the fiscal cliff right now. quite frankly contractors are worried about their cats, talking to workers, worried about their jobs. that does not help the economy grow. the prospect of tax increases is not coming markets. we have seen it down for weeks now. it's not making businesses hire. bad reports. so on the ground the voters are going to feel this effect, they're feeling good now. they will see it in the jobs report and it will recognize that this is something that is unacceptable and felt that come november. lori: thank you so much. really nice speaking with you this evening. and we wanted to bring you new developments in a story we have been following closely. more trouble for the chicago

school district. moody's downgrading the credit rating in the wake of a new labor deal with teachers. jakarta teachers return to classrooms after nearly ten days of striking. now according to the deal which has yet to be officially ratified that teachers won an average 17 and and a half percent pay raise or four years. the deal cost the school district's $74 million per year. it is that number that worries moody's. school system is already facing a billion dollar deficit in 2014. well, still to come, romney's people trying to lower expectations for next week's debate. his steaks. and the film that sparked violence and average around the world. the anti is law movie is banned in other countries. what about your? answers next.

lori: freedom of speech under fire. one man's video, world leaders up in arms a

lori: outrage across the world with his entire islam you to video under arrest. could face up to three years behind bars for allegedly violating his parole and lying about his involvement in the film. this as global leaders feared nuys the very notion of free speech. joining me now. great to see you. first, the filmmaker. and so let you know how to pronounce his name. >> that's why he was arrested. people have said, how can he be arrested on a probation violation? because we don't know who he is. you will even give us his real name.

lori: an information gathering exercise and the part of the stories. >> more than that because he as a probation violation on check writing counterfeit violation in 2010. so now he is saying to my not telling you i am. i'm not telling you my name. that is a flight risk, and that means he's going to be locked up lori: meanwhile, one of the actors in this film, ms. garcia, she feels that her performance is copyrightable. she once authorize her acting performance. therefore she would make more money. >> not going to work. her in a game, well, we are talking about her, so that gives her more jobs may be. she sang, well, i'm so upset about this. i get that. sign up for something like that. you sign up to be an actor or actress and a movie. you do that, get paid a certain amount of money. you do not own the copyright that the employer ruction company does.

they know that. they sign a waiver. everyone knows that. lori: i don't want to embarrass you. did you imagine if we had copyright's? >> it would be great. lori: can we get that? listen. it could set an interesting in serious president's ear. >> it could, but it won't. it will get thrown out. the court case has been thrown out pitches trying to refile again and make a name for herself. that's fine. legally she has nothing to stand on. it just won't work. what it set a horrible precedent? yes, it would. again, anything like that, we do not have the claim over that. lori: the president really worth pointing out is free speech and how it is sparking of this conversation about that now. even the president said, i accept that people we will call the awful things everyday and i

will defend their right to do so. the movie itself looks like a college production at best. lori: it's like crayons. lori: amazing how much traction it has gotten and a political football it is. you know, what does it say? could it jeopardize free speech to make the demonstration this continue to point to this movie is the reason for the uprising in violence. >> many people have said that had nothing to do with it. the timing of this came out very differently. a bigger issue on free-speech, no. i don't see it being that much of a burden. this country and no other country their lead and died for this first amendment. of all the horrible things, unless they're fighting words that incites violence that you could argue this did, but there is no indication of it. lori: thank you so much.

still to come, a huge miracle. today from apple. details. and is mitt romney ready for next week's presidential debate? the first one. a new memo shows there may be some concerns. details next.

♪ lori: president obama getting some debate press today before heading to a flight of fund-raisers. the president and mr. romney said to face often less than one week for the first presidential debate. both campaigns are downplaying the candid wiping of their opponents. how will these low expectations play out? with more on this, joined by ed

rollins, republican strategist top boxes contributor. likewise, doing great, especially looking forward to this conversation. what is the strategy? >> you cannot play down the debate. the biggest thing left in his campaign. if you don't do well it does not matter whether you said you're not going to do well. you discord against. traditionally presidents don't do as well in debates. nobody basically stands up and makes points back-and-forth. sometimes they're hard to get going. this president is a good debater. my sense is he will be on his best. romney obviously became a very good debater. style versus substance. charismatic, a great debater. romney, livermore. also very strong in a primary debate, as you just alluded to,

especially against gingrich. >> i'm sure fully ready to go push and shove. i hope the talks more about what he will do as president. we all knew -- we all know what obama has done. we don't need to be reminded of all of that. don't make it -- pointing out of the mistakes that the president made. make it a little more about yourself. lori: boxing gloves. >> television is a cool medium. you want your commander in chief, your president to basically looked like he is totally in control. so i would always advise a candidate in a presidential debate to never lose your cool. lori: you raise the issue of tv. it has to be exciting tv. has to be compelling and capture that audience. >> it will be a dramatic audience. and what always happens is, the first debate is the one that everybody watches. and so, people i know starting to vote early.

30-40 percent of the voters voting this time. before, the end of season. so after this debate a lot of people will basically mark their ballots and either mail them in or go do early voting. lori: elements and is working away from romney. the commercial break. so these debates have to be super important. can he regained those? >> what he has to do is, you know, i think there is no question that the president is a better campaigner. i think there is no question that romney would be a better president. at this point in time he has to be a good campaigner and you have to selma yourself, talk more about here is what i will do and get this country moving. lori: romney today just says a win in pennsylvania would be a shock even though most people would agree with that. do you really go out and say that? >> he was doing a fund-raiser. lori: was he being self-deprecating? >> i think he probably was.

1149 states. the last one was pennsylvania. a tough state. elected a republican governor. a republican legislature. emblem. lori: where is romney most vulnerable? >> what he has to do, i mean, i think the key thing here -- lori: 47%. >> that hurt him. no question. and i don't think he ever intended to mean that in a derogatory way. it has been misinterpreted. what he needs to do and what i keep hearing from people all across this country is tell me what he will do. be more specific. i am going to repeal obamacare but then there are parts of obamacare that i like. he has to be consistent. i will get rid of government programs. i can't tell you which ones because i have to deal with congress. all of those may be valid statements, but it's not what people want to year. lori: government revised its job

data. turns out that more jobs were created under this administration the more lost. a very great for the presidents. a good -- i'm sorry. you know what i'm getting with this. what should they run their response be? >> statistics are exactly that. and, i am a little suspicious of things that congested six weeks before. lori: to other job reports before the election. >> and the country knows that there are way too many americans unemployed, way too many young people coming in of colleges that cannot find jobs, we too many people on unemployment for a long time. so no matter what the labor department says, we still have a long, hard way to go. lori: quickly, who you think will win? >> of the election were held today, the president would get reelected. we still have 30 days, and that's a lifetime in politics. lori: always a pleasure. >> my pleasure. well, no i want to know what you think. here's a question. you is the better communicator? the president or government from the? log on and vote on the right

hand side of your screen and i will share the results of the end of the show. still to come, the market seems to be limping toward the end of the quarter. apple ceo writing a letter to customers with a simple message, we're sorry.

♪ lori: and the world's biggest company, apple ceo tim cook apologizing for the new act. he is promising to improve the program in the future. adam shapiro is in the newsroom with the very latest. a lot of people were surprised with an actual apology. >> this is a company, apple always prided itself on customer service and always doing what is easiest and simplest for customers. not so much out of line to have the company said, we are doing what we can on behalf of you even though this application really is no good. we will make it better command here is what he said that everyone going, this is really interesting. he talked about why they first did it. we wanted to provide our customers with better maps, including features such as turn by turn directions, voice integration, flyover and vector based maps. in order to do this via to create a new version from the ground up. did not get too far off the ground. people have been complaining.

they took google maps of the iphone. iphone thought to my ls six operating system. if you download it onto your ipad, no more youtube, no more googol anything. they are really angry with each other. so their apple iphone at -- apple ipad. and in the letter, what he's saying is you can get to the ad store and download becoming even kugel or nokia. this is competitor's software. look. go get the competitor's software . we project our own application. i put money in the fact that apple will partly perfected pretty quickly. lori: you're telling us that the conflict, competition, heated nature. referring everybody that way to get their maps. >> it's easier to go and did map quest or nokia. you still have the go through

some moves to put on your iphone. you can, but it's much easier to get the other software. apple knows it will trump. lori: any word of time friend? >> botox of more than 100 million devices using it. and every time someone uses it, and it points out you took me to the wrong place it gets better and better. so the more people use it by not just talking face on tv. i have the new map, and it worked for me. but it was not so hard. the more people use it the better will become. lori: not just a talking head? news to me. >> okay. i'm a good looking talking head of vanity, the name is shapiro. it has been a long day. lori: you have a great weekend. >> youtube. lori: all three indexes closing the week in the red on renewed concerns about qe3 and it spain's budget plan. the good news along with the s&p

and aztec inn in the third quarter with gains. here to weigh in commentator and editor of money news. the markets continue to head higher for a time. there will continue to pose marcasite. it will not be allowed for the economy. we will see if pullbacks. of thing that's a qb being ineffective. lori: out in the last couple of days saying the economic data released just this week, namely the big gdp revision, down or revision at about 13% suggesting that more qb might not have been a bad idea. what do you think? >> well, never very effective at green down unemployment and

creating jobs, helping the economy too much. it is good at inflating asset prices an good at taking commodities up. and it is also good at taking stocks up. so basically what this has done is offering a little bit of a time when no for politicians to get their fiscal act together and get it right. lori: good qe for inflating the debt. is that part of the fed gold? >> it is. unfortunately the fed tries to the pay get back with cheaper dollars. they continually dilute the value of the dollar, and that is why you see a lot of asset prices go up. it's one of the dynamics of why gas keeps going up. that sort of thing, the dilution of the dollar. it takes more dollars to buy those very same things. lori: you have a commodity names for us. one of them. you want to tell me?

>> yes. several of my picks. i have my subscribers right now. commodity based stock picks that will do well in the face of inflation because it is coming. the dollar dilution will continue. inflation will continue to head higher, and these assets are some of the ones that will benefit the most help fend off inflation for people's personal portfolios. lori: we have not seen interest rates move up sharply. so a lot of people are warning about this threat of inflation. do you see it coming in as a process back will recede in interest rates? >> i think for now interest rates will remain low. there will come a point where inflation five will get bad enough so that they will have to jack up interest rates. while politicians policy like

inflation what they don't like is hyperinflation. people would write and draw the politicians that be out of office, so they cannot have an stand for hyperinflation so that it will do everything that they can to try to close that. lori: a recent survey found 7% of top investors expected financial tsunami next year. are we in an environment where hyperinflation is a threat? >> i think increased inflation is a threat. i think it's going to continue to pitch the consumer. i'm not sure we're going to have hyperinflation. we have not seen that starts to take affected. lori: thank you. >> thank you. lori: fox business alert. bankamerica says it will pay nearly two and a half billion dollars. the 2009 suit stems from the bank's acquisition of merrill lynch. investment save pfa misled them.

bankamerica denies the allegation and said the settlement is to make the lawsuit away. and a half% today on the news. up next, you might think you have a perfect credit score, but does your lender agreed? a new report shows there may be a difference between what you think and what you have. we are looking for you and your money next. ♪

lori: your credit score may not be what it seems. major discrepancy between as

♪ lori: in focus tonight, you and your 40-ton credit score.

do you know which one year went to the lender is looking at? it turns up the when you receive as a consumer might not be the same credit score a potential lender receives causing huge problems. joining me now with more, consumer education director for credit dot com. thank you for joining us. how widespread is it? how often does it happen that your credit score as the consumer is different than a score your lender is looking at? >> well, almost 100 percent of the time because typically consumers do not get this course that lenders are using, unless they have already applied for credit and been turned down or charge more for credit, then a disclosure is required, but what most of us are doing is going online, getting an education credit score which can be helpful but is not necessarily the same score the lender is using. lori: so why should i spend a right to purchase by credit score if it is now with the lenders getting anywhere? >> it's a great question.

of course we give a free credit score. we know what you spend that money. i think what consumers need to look at is, what is the information telling me about my credit worthiness. what can i improve and what can to improve? you can avenges court. lori: and as to what your saying, but i just want to give money. i want to borrow money. a fire and turned them to live by the microspore is better than what the lender sees it is just going to leave me, you know, trying to more and more financial institutions looking for money in not being able to get it. so had you know the real deal? him -- >> that is a great question, and i think it goes back to this whole issue that the same factors go into all of these course. let's say you do look at your credit score and it gives you an

interpretation. your payment history is not so good. can you do something about that? stepping your bills on time, the speed of light damage? what the siepi be found in their study was that there is actually a much stronger correlation that we would have guessed between these educational scores and scores that land is used, so it is not as if they are so far of the people are making mistakes, but i think they brought of a very good point which is what you're bringing up. sometimes people see a score and maybe it's not as strong as they think. so they are free to shop around because they're afraid there being -- they're going to be turned down, and that is a problem. lori: how far apart are your educational scores versus the actual score? >> it can be very different, depending on which educational score you're using because of the operetta very different scale. the number could be very different.

focus on what it's telling you about your credit worthiness, strong all week, and improve. lori: and harping, but doesn't the consumer have the right to know the information that the lender is considering one determining whether to let him borrow cash? >> you actually don't have the right to see that credit score until you are turned down or charge more or are shopping for a mortgage. here is the problem. let's say you get that number. howdy you know what bankamerica is going to decide today is a good enough credit score to get the credit card you want? you don't even know even if you have that number because that is proprietary information. in that sense we have to control the weekend and make sure our credit is as strong as we can. lori: thanks you so much. so educational and informational. college loan that has stretched to a record number of u.s. households. 22 million households had

college debt in 2010. in that is double the share in 1989 upper 15 percent. able to get full-time career after graduation. and the dead just keeps piling up. but in tonight's top by the colleges that will help you get that pier salary. number five, claremont, california. this liberal arts school, $67,000 right out of the gate. number four, california institute of technology, earning more than $67,000 as a starting salary. number three, east coast counterparts in massachusetts institute of technology beat mit grad as little more to begin with. and the u.s. naval academy, starting salary for graduating midshipmen to more than $70,000 a year. the number one school with the highest paid grad is the u.s. military academy. those graduating from west point

can and $76,000 a year to begin their career. but when you looked in yes down the road, the graduates earning the most money are from princeton university with an average salary of $137,000 a year. interesting numbers. we'll be right back with the answer to our question of the day. who is the better communicator? the president for mitt romney? ♪

debate wednesday, campaigns trying to lower expectations for each candidate, but who do you think is the better communicator? here's what some of you are tweeting. she says we don't need a great communicator, but a great leader, another viewer says it's a tough call. mitt is a rhetorical kind of

guy, and barak obama is a d obama is a pie in the sky guy. obama is the used car salesman, and romney gets it fixed. not a good talker, but can fix it. we asked, and 29% said obama, and 71% said romney, who is the better communicator to remind you. log on to gerriwillis.com for the online question every weekday. e-mails, lauren says my grandchildren knows the employment problem the country faces is due to business related regulations and tax issues. the feds' injection of worthless paper in the market does not solve the issues. rich says the feds announcemented of the endless qe has got to be the dumbest economic policy from the fed. that's like giving the irresponsible teenager is new credit card each month. we enjoy hearing from you.

send gerri an e-mail, especially to complain about my fill-in duties, complain to gerri, fox business.com. finally, another thought, a 75% tax rate, thankfully, not talking about the country, but the new rate is part of the french budget to tax the super rich. the socialist government there will now be collecting three quarters of people's income. just like unbelievable. now, to be fair, france, like most of europe, is in dire straights, and they are hoping the new plan will bring in nearly $40 billion u.s. dollars, but the government is not cutting spheppedding, just taxing the rich, punishing the wealthy is 5 theme around the world including from our government. >> it is a fact that around the world, the elites of every country are making money. there are rich people everywhere yet, they do not contribute to

the growth of their own countries. lori: well, here's the thing. the wealthy, at least in this country, are paying their fair share. the vast majority of the taxes collected in fact. we can talk about the tax rate, but it should be noted how close we are getting that rate in the country. that's my two cents seven years a slobodan replace dope with hope. thank you for being with us. >> 39 days out what of one-third of the votes are already in? we could be there already the most cunning development this week for a record number of americans the election is already done. with 32 states allowing early voting with few restrictions why are they seeing so few mitt romney